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ETI Base Code

Summary

The Ethical Trading Initiative (ETI) is an alliance of companies, non-governmental organisations (NGOs) and trade union organisations. They promote and improve the implementation of corporate codes of practice which cover supply chain working conditions. Their goal is to ensure that the working conditions of workers producing for the UK market meet or exceed international labour standards. Member companies commit themselves to the ETI Base Code, and their suppliers need to implement the principles of the code. The member companies include both retailers and suppliers who source and/or sell food, clothing and other products in UK markets.

Objective  Is the focus of the standard on economic, social, environmental, food safety or organic issues?
Social:
The purpose of ETI is to ensure that working conditions of workers producing for UK market meet or exceed international labour standards.
Why?  Who is asking you to use this system? Is it a market requirement or a voluntary system?
ETI is a voluntary system mainly for processing sites and plantations.
Scope of the standard  What kind of processes within your organisation/company should be changed according to the standard’s criteria? Most systems look at the production process, and/or look at the processing of the produce. Some systems look at organisational processes as well, e.g. if democratic structures are in place, how support departments are organized (HRM/financial), if internal control systems are in place, if ILO labour conditions are implemented, etcetera. Additionally the processes of your suppliers or service provider can be part of the standards’ scope as well. This means that you are responsible for the sustainability of their (or part of their) actions as well.
organisational processes Y: aspects related to labour conditions
(on-farm) production Y
processing Y
supplier/service provider Y
Who can apply?  Not every code or standard can be used by every actor within the supply chain. Some are just targeted to a specific group within the chain, others focus on the complete chain. You can think of the following parties: producers/producer group, processor, exporter/trader, importer, retailer.  
producers/producer groups Retailers who join ETI commit to implementation of ETI base code of all their suppliers (first to third tier). They request suppliers to undergo audit against the ETI code. It is also applicable to suppliers in UK
processor On request of their clients (company member of ETI).
exporter/trader N
importer Are member of ETI
retail Are member of ETI
Products  Most systems focus on specific products, product groups or sectors. Please look carefully if you produce falls under the scope of the standard.
Consumer goods among which food and clothing.
Markets  Although most systems are used worldwide, they often have their origin or focus in a specific country or region. Some countries/regions prefer a certain code or standard.
Multinationals, mainly UK
For the list of company members click here
Benefits  A very legitimate question is what this specific certification means to you. Does it provide you access to markets, or even to niche markets? Does it guarantee a better price, or maybe even a premium on top of a minimum price? Does it create  better access to support services?  
market access Y
access to niche market N
premium N
other N
Support services  To be able to comply with the requirements of such systems, you may need some support. Various experts in the field of certification are available and can give this (paid/free) support. ETI can provide support for implementing the code to the companies.
Support to the suppliers can take place through the member companies as retailers are responsible.
Unless in a pilot project, ETI does not give support to producers.
Adaptations/investments   All suppliers and subcontractors of a company need to comply with ETI code as well ETI works with living wage - if there is a negotiated collective agreement, this is taken as living wage. If not: auditor will work out living wage component.
Common areas for improvement: freedom of association, working hours, health and safety and disciplinary practices.
Costs & Time  Working with these certification systems and implementing the necessary steps is often not an easy task. You have to be aware of the many implications and adaptations you may have to make. This section gives some examples of the kind of investments you to have to think of. - For members: a member ship fee dependent of their size
- Suppliers and subcontractors: audit costs and costs for corrective action
NB smallholder farmers are not audited at this moment. The base code is for plantation workers.
System characteristics  In this section you will find a link to the standard itself and some main points of attention.
The system is build on a code of conduct to be complied with by all members and its suppliers. It is not a certification system as such.

The ETI base code contains of 9 clauses which reflect the most important international standards for labour practices (ILO conventions). Companies commit themselves to the starting point of the code and yearly report on the progress made. ETI base code is a minimum standard, supplemented by law of different countries

For the ETI Base Code click here
Verification    
internal inspection Y: self evaluation by means of reporting.
external inspection - Monitoring will be done on a yearly basis by means of reporting and independent verification.
- For suppliers independent audit need to be done by one of accredited auditors. See the fact sheet suppliers for more information.
Type of label  One of ways to show that a product complies with a specific standard is to label it. Some codes or standards do not use a label at all. Nevertheless, most choose to carry a Business to Business (B2B) or a Consumer label.
Non
Who's behind it?  What is the origin of the standard, and who has initiated the idea? Who is the owner of the certification system?
ETI has been set up by a group of companies, NGO's and trade unions. It is a non-profit organisation run by an independent ETI secretariat.
Trends  The trend section is mainly based on future perspectives of the standard. Are they going to expand to other products, other markets? Is there increasing interest from markets for this specific certification? What can you expect in the coming period?
There is an MoU between ETI and SAI to stimulate cooperation.
Contact ETI
  website ETI
   
all certification systems

 

 
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